|Dog Treat Company Unleashed|
|Topic||Supply and Demand
|Key Words||Supply, demand, economy, product, diversify, export business, costs, sales, go public, economic growth.|
Three Dog Bakery is a company that sells gourmet treats for dogs. It started business ten years ago. The owners' dog, Gracie, was a fussy eater and wanted food with natural ingredients, so they started making homemade dog food. Then they found themselves supplying a dozen 1-pound dog biscuits to the local vet's office. After two years, demand was outstripping supply, fueled by the strong economy and owners' attachments to their dogs, so they rented a cheap storefront, bought an inexpensive industrial mixer, and diversified their products.
By the end of 2000, they will have 40 stores in the U.S. and Canada. They also ship overseas. Critical to their export business has been their Internet site which has allowed them to keep costs low. Also, sales on the Internet average $40 compared to $15 in stores.
The $10 million company is looking to go public now. The continuing economic growth shows no sign of waning, and dog owners continue to indulge their pets.
(Updated April 1, 2000)
|Source||Dina Temple-Raston, " Canine cuisine fetches success," USA Today, February 17, 2000.|
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